Close risk warning

As with most forms of investment, peer-to-peer lending carries a degree of risk to your capital; in this case, if the borrower is unable to repay their loan. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan, with the added benefit of a discretionary Provision Fund for some of our investment accounts. Investment Account target interest rates should be considered along with the relevant Investment Account expected defaults & losses information. Past performance does not guarantee future performance. We recommend that prospective lenders read the Key Investor Information pages before investing.

The Great British Business Account

7.00% p.a. target loan interest*

Credit Awards Best Peer-to-Peer Lender 2016 defaqto 5 star - peer to peer lending 2016
*

Interest is quoted gross and is capped at the quoted rate although actual returns could be lower. Target interest rates should be considered along with the relevant investment account expected defaults and losses. Annualised projected return after expected losses for the GBBA is currently 7.00% gross (based on stress testing of the GBBA's Provision Fund - see here for further information) . Past performance does not guarantee future performance. This is an investment in peer-to-peer loans - it is not a bank account. Capital is at risk.

What is the Great British Business Account?

The Great British Business Account (GBBA) allows you to automatically diversify your funds in a number of UK SME businesses in order to help you spread risk.

Realisable asset security (normally property or land based) is taken on all loans and the account has an added protection of a discretionary Provision Fund.

Watch the video for more information.

Breakdown

Great British Business Account
Target interest rate 7.00% p.a. target loan interest*
Who do you lend to? British businesses with realisable security
Investment of funds Automatic as new loans are released
Provision fund Yes
Diversification Automatic
Access to your money No fee for early withdrawal – exit possible subject to demand from other investors. Otherwise you will receive your cash back over the term of the loans held within the account which could be over a period of up to five years.
Notice period None
Invest from £1
Get started
Target
interest rate
Who do you
lend to?
Investment
of funds
Provision
fund
Diversif-
ication
Access to
your money
Notice
period
Invest
from

Quick Access
Account
3.75% p.a. target loan interest*
British businesses with realisable security Automatic as new loans are released Yes Automatic No fees for withdrawals and with very fast access to funds under normal market conditions. None £1 Get started

30-Day Access
Account
4.25% p.a. target loan interest*
British businesses with realisable security Automatic as new loans are released Yes Automatic No fees for withdrawals and access to funds after 30 days' notice, in normal market conditions. 30 days £1 Get started

Property Secured Investment Account
5.50% p.a. target loan interest*
Business borrowers who provide UK property security for a loan and having modest loan to values where there is no loss expected Automatic as new loans are released Yes Automatic No fee for withdrawals, although this may change in the future with notice provided at that time. Exit possible subject to demand from other investors, otherwise you will receive your interest and capital in accordance with the terms of the loans held within the account which typically would be from six months up to five years. None £1 Get started

Green Energy Income Account
7.00% p.a. target loan interest*
British business with property security available Automatic as new loans are released Yes Automatic No fee for early withdrawal – exit possible subject to demand from other investors. Otherwise you will receive your cash back over the term of the loans held within the account which could be over a period of up to five years. None £1 Get started

Manual Loan Investment Account
5.50-18.00% p.a. gross
Any of our secured loans with available units – your choice Manual but with ability to target specific loans automatically No Manual Partial or full redemption possible via the Aftermarket, subject to demand from other lenders – no fee. None £1 Get started
*

Interest is quoted gross and is capped at the quoted rate although actual returns could be lower. Target interest rates should be considered along with the relevant investment account expected defaults and losses. Access times relate to withdrawals in normal market conditions but cannot be guaranteed. This is an investment in peer-to-peer loans - it is not a bank account. Capital is at risk.

All rates are quoted gross, before allowances for tax or any possible losses. These rates of return are currently available to investors on the Assetz Capital platform.

Why invest in the Great British Business Account?

The Great British Business Account (GBBA) allows investors to automatically invest in business loans to small- and medium-sized enterprises (SMEs). All loans are secured against property and have passed Assetz Capital's strict credit checks.

The GBBA offers a target, capped interest rate for investors of 7.00% gross per annum (before tax and any loan losses). This account also benefits from strong, realisable asset security (usually property or land) on all loans and automatic diversification across multiple loans, plus the added protection of a separate, discretionary Provision Fund.

Great British Business Account

Not only is the GBBA a fast and simple account for investors, it also helps carefully vetted British businesses to grow and thrive. This means that GBBA investors not only earn a fairer, risk-adjusted return on their money, but also help to boost the UK economy and create jobs with their lending!

How it works: Great British Business Account details

  • The GBBA offers a capped, target lender return for investors of 7.00% p.a. gross (before tax and any loan losses and protected by a discretionary Provision Fund). We do not charge any fees to GBBA investors.

    Please note that you could receive less than this rate of return if the GBBA's Provision Fund were exhausted and then loans were to default or borrowers were no longer able to repay their loans.

  • The minimum investment into the GBBA is £1 and there is no maximum, subject to loan availability.

  • Included in the GBBA are loans to UK SMEs that are secured with first and/or second legal charges over land or property. In addition, these loans may also benefit from security taken over machinery, invoices, company assets, debtor books, other realisable assets and/or a personal guarantee from the business owner, as well as having the benefit of a discretionary Provision Fund (see below).

    The GBBA will automatically diversify your account funds across many matching loans at any given time, with the aim of doing so in an equal and proportionate way and subject to loan availability. For example, if 50 suitable loans are available, the GBBA will aim to invest approximately 2% of account funds into each loan. Likewise, with only five suitable loans, the GBBA will aim to invest approximately a fifth (20%) of account funds into each loan.

    The maximum loan-to-value ratio for individual loans included in the GBBA is three-quarters (75%) of each property's value. Renewable-energy projects are excluded from the GBBA, as these are included in the Green Energy Income Account.

    What’s more, by investing in the GBBA, your money helps to boost the UK economy by supporting the growth of carefully vetted British businesses, as well as earning a fairer, risk-adjusted return.

  • Interest (income) is earned monthly, but as not all loans pay monthly interest, it may be accrued on a limited number of loans for payment at the same time as the loan is repaid. You will also receive capital repayments from time to time, based on loans' contracted repayment dates (their due dates for repayment). Interest and repayments can be automatically reinvested (see below).

  • All GBBA investments benefit from automatic inclusion in a separate, discretionary Provision Fund intended to help to protect investors from income delays or income and/or capital losses within the GBBA. Any loan interest paid by borrowers that is above the 7.00% target rate for this account, minus any contractual fees due to Assetz Capital, will be used to fund the Provision Fund.

    The Provision Fund that protects this account seeks to protect against any potential capital losses if, in the event of a loan default, the security taken on that loan does not cover the outstanding balance due on that loan. The Provision Fund is targeted to provide a coverage multiple of 3x the expected losses over the life of the loans within the account even in challenging economic conditions. The expected losses on the account (prior to any coverage by the Provision Fund) are calculated after applying extreme stress to the security taken to protect each loan and we have used the Bank of England 2016 Stress test assumptions to that security. The Bank of England Stress tests are designed to ensure UK Banks can withstand the worst expected future economic conditions and are a sound and prudent basis for this test. We then calculate a multiple of 3x those potential losses and that is the target for the Provision Fund funding. We also publish the current coverage ratio and that is also 3x as at 24/6/16. For more information on our default and loss performance data and more detail on our methods of analysis and risk management please see our Defaults and Losses statistics and explanation page.

    For more details, please see the main Provision Fund page.

  • At Assetz Capital, we take realisable asset security on all loans, with a view to protecting our clients' investments. Unlike lightly secured or unsecured lending, we don't just rely on personal guarantees. Instead, we take charges over property, equipment and other assets worth considerably more than each loan. This security and the above-mentioned Provision Fund help to minimise the potential for investor losses.

    All GBBA loans are secured against property, with security taken to ensure that a property's value is at least 133% of the loan amount. In other words, the maximum loan-to-value ratio for individual loans included in the GBBA is three-quarters (75%) of each property's value. In addition to these minimum levels of property security, we may also take additional types of security.

  • It is quick, simple and straightforward to fund your GBBA today: you simply move money into and out of your account by bank transfer. Using 'faster payments', this service is almost instantaneous, but other transfers can take up to three working days. There is no minimum transfer amount for bank transfers.

  • Within your Loan Dashboard, you can choose to set your account to automatically re-invest interest income and capital repayments back into your GBBA (if it is still open for new investments). Alternatively, you can transfer this cash into your Cash Account for investment in other loans or Assetz Capital Investment Accounts.

  • Investors can exit loans early via our Aftermarket, subject to demand from other investors at that time. Via this Aftermarket and at your request, the GBBA will aim to sell part or all of your investment at any time, subject to continued demand for these loans from other investors.

    What's more, you have the ability to add to or reduce your investment in your GBBA. After your initial purchase, if you would like to increase or decrease the amount invested, then you may do so, subject to availability and demand. When changing your investment level in your account, the GBBA will aim to continue to automatically balance your loans, so as to maintain maximum diversification.

  • Via your Loan Dashboard, all of your Assetz Capital investments can be tracked, monitored and managed through our comprehensive and market-leading portal.

    In addition, you can invest directly in the underlying loans that the GBBA invests in, subject to the availability of these loans in the Aftermarket, but without the protection of the Provision Fund. You can do this by using the Manual Loan Investments Account (MLIA) and directly selecting these individual investments. Without the protection of the Provision Fund, these manually selected loans may deliver higher or lower net returns after any losses than the GBBA.